New Found Gold

New Found Gold Corp. (TSX-V: NFG, NYSE-A: NFGC) is a Canadian gold advanced exploration company that holds a 100% interest in the Queensway Gold Project, located in Newfoundland and Labrador. The company has transitioned from pure exploration to development phase following the completion of an Initial Mineral Resource estimate in March 2025 and a Preliminary Economic Assessment in July 2025. The Queensway Project encompasses 175,450 hectares and covers a 110-kilometer strike extent along two prospective fault zones near the town of Gander.

The company operates under a new management team that assumed leadership with a clear mandate to advance Queensway toward cash flow generation. New Found Gold benefits from a strategic shareholder base that includes Eric Sprott with approximately 19% ownership, providing both credibility and financial backing. The company's focus has shifted from discovery to resource definition and pre-development activities, positioning it as an advanced exploration company with near-term production potential.

The Queensway Gold Project presents a compelling development opportunity anchored by high-grade gold mineralization in a politically stable jurisdiction. The preliminary economic assessment outlines a 15-year mine life producing 1.5 million ounces of recoverable gold through a phased development approach. The project's economics demonstrate strong fundamentals with an after-tax net present value of C$743 million and internal rate of return of 56.3% at a US$2,500 gold price.

The deposit's geological characteristics offer several advantages including high-grade zones that start at surface, proximity to existing infrastructure, and access to low-cost hydroelectric power from the provincial grid. The AFZ Core area contains measured and indicated mineral resources totaling 18.0 million tonnes at 2.40 grams per tonne gold for 1.39 million contained ounces, with additional inferred resources of 10.7 million tonnes at 1.77 grams per tonne gold.

Recent drilling results continue to expand known mineralization, with intercepts at Keats West including 55.0 g/t Au over 35.05 meters, 20.7 g/t Au over 18.05 meters, 15.4 g/t Au over 16.70 meters and 13.1 g/t Au over 10.60 meters . The discovery of new zones like Dropkick, located 11 kilometers north of the AFZ Core, demonstrates the district-scale potential with intercepts including 89.5 grams per tonne gold over 5.85 meters. The extensive land package provides significant exploration upside beyond the current resource base.

The company operates under experienced leadership with CEO Keith Boyle, P.Eng., bringing engineering expertise and mine development experience. President Melissa Render, P.Geo., provides geological and technical oversight as a qualified person under National Instrument 43-101. The management team has implemented a disciplined approach focused on advancing the project through systematic resource definition and engineering studies.

The current leadership emphasizes capital efficiency and early cash flow generation through the phased development strategy. Their approach prioritizes processing higher-grade material first to optimize project economics and fund subsequent expansion phases. The team has established clear milestones and timelines for project advancement, including completion of feasibility studies and permitting processes.

New Found Gold has outlined a comprehensive three-phase development strategy designed to minimize initial capital requirements and shareholder dilution, while maximizing early returns. Phase 1 involves establishing a small high-grade open pit operation with off-site toll milling at 700 tonnes per day, requiring initial capital of C$155 million and generating average annual production of 69,300 ounces during years 1-4.

Phase 2 encompasses construction and operation of an on-site 7,000 tonnes per day processing facility with in-pit tailings deposition, increasing average annual production to 172,200 ounces during yesrs 5-9. Phase 3 adds underground mining operations at 700 tonnes per day targeting high-grade zones. This phased approach allows cash flow from early operations to fund subsequent expansions, reducing dilution to shareholders.

The 2025 work program includes 70,000 meters of drilling focused on converting inferred resources to indicated classification and expanding known mineralization, with approximately 20% budgeted for exploration. Excavation programs at key zones provide enhanced geological understanding and grade confirmation. Environmental baseline studies and engineering work support permitting and project advancement toward construction decisions.

The preliminary economic assessment demonstrates robust project economics with average annual cash flow of C$75.2 million over the 15-year mine life. All-in sustaining costs average US$1,256 per ounce, positioning the project favorably against industry benchmarks. The phased development approach generates cumulative after-tax cash flow of C$1.128 billion at base case assumptions.

Phase 1 operations show particularly strong economics with all-in sustaining costs of US$1,282 per ounce and rapid payback of initial capital investment in year 2. The project demonstrates sensitivity to gold price appreciation, with net present value increasing to C$1.45 billion and internal rate of return reaching 197% at US$3,300 per ounce gold.

Growth capital requirements total C$585 million over the project life, with the majority required for Phase 2 processing facility construction. The company recently completed financing to fund the expanded 2025 work program, providing adequate working capital for near-term development activities. Operating costs benefit from proximity to infrastructure and skilled workforce in Newfoundland and Labrador.

New Found Gold represents a compelling investment opportunity in the gold sector, offering exposure to a high-grade development project in a favorable jurisdiction with experienced management and strong project economics. The Queensway Project's phased development approach addresses many typical development risks while providing early cash flow generation and reduced capital intensity.

The combination of proven high-grade mineralization, comprehensive engineering studies, and a clear path to production positions New Found Gold as an advanced development company with significant upside potential. Recent drilling results continue to expand the resource base while demonstrating the district-scale exploration potential of the extensive land package.

The project's location in Newfoundland and Labrador provides access to skilled workforce, existing infrastructure, and a supportive regulatory environment. Strong project economics, experienced management, and strategic shareholder support create a foundation for successful project development and value creation. While development and operational risks remain, the systematic approach to project advancement and robust underlying economics support the investment thesis for New Found Gold as a near-term gold producer with substantial growth potential.